Fresh doubts were cast over the future of HMV yesterday after it admitted it
was on course to breach its banking covenants.

Shares in the company fell 40 per cent to 2.5p after the company revealed a
pre-tax first-half loss of £37.3 million and a continued decline in sales.
The threat of an imminent breach of the conditions attached to its bank
loans led to the company issuing a “going concern” warning along with its
results yesterday, as directors warned investors that there was “material
uncertainty” over its future.